Stop 01 · Lot

Size the loan, the draws, and the cash at closing

Start with debt ratio for the permanent mortgage, then look at interest-only payments during construction and cash if the lot is not already owned.

On the path · Lot

Max construction loan by debt ratio

Monthly income × DTI, minus other debts and housing expenses, converted to a loan amount at the estimated permanent rate.

Interest-only during the build

Construction-to-perm usually charges interest only on funds already drawn — not the full loan — until occupancy.

This month’s interest

$1,688

$300,000 outstanding × 6.75% ÷ 12. Estimate only.

Cash if the lot is not owned

Many one-close programs count owned-lot equity toward the down payment. If land is still being purchased, plan on cash equal to the required down payment of total cost.

Estimated cash in

$0

Lot equity is applied first. Cash is only the gap above the required down payment.

Architect / designer fee

Percent-of-hard-cost range by scope and complexity.

Builders risk premium

Course-of-construction coverage for the build period.